Koster Signed Pledge; Protects Tax Breaks for Companies That Send Jobs Offshore

Stands by Pledge Even with Understanding of Harm to Northwest Washington Workers

Everett, WA - Earlier this year, John Koster signed a Federal Taxpayer Pledge that commits him to supporting tax breaks for corporations that continue to send jobs overseas.

“John Koster may choose to parse the language of the commitments he makes,” said Brooke Davis, Larsen’s Campaign Manager, “but it’s clear that he signed a pledge committing his support to tax breaks for corporations that send American jobs overseas for the sake of a small increase to their bottom line.”

Americans for Tax Reform (ATR) clearly state that they view the elimination of tax breaks for corporations sending jobs overseas as a tax increase and a violation of the Taxpayer Pledge.

ATR released a Tax Pledge Alert stating “The tax increases in question are all tax hikes on U.S. employers doing business overseas. By raising these taxes, it will be more likely that jobs and entire companies will be shipped overseas. The U.S. has the highest corporate income tax rate in the developed world, and double-taxes international income on top of this. ... Removing the tax relief and raising taxes will only serve to push jobs and businesses out of the country. The proper way to handle these tax provisions is in the context of international tax reform which is - at worst - tax revenue-neutral and involves a lower corporate tax rate.” http://www.atr.org/tax-pledge-alert-atr-keyvote-againstbr-a5298

“In contrast, Rick Larsen believes the elimination of those tax breaks is good for American business and American workers,” Davis continued. “It’s still early, but this issue crystallizes the choice voters have in this election.”

The non-partisan Citizens for Tax Justice wrote that the tax loopholes for corporations that John Koster supported when he signed the pledge “can result in U.S. corporations enjoying a negative effective tax rate on their offshore investment income. This creates a strong incentive for U.S. corporations to shift profits offshore, either through accounting gimmicks or by moving actual operations and jobs offshore....” http://ctj.org/taxjusticedigest/archive/2010/08/house_minority_leader_says_tha.php

“John Koster signed the pledge, the group that wrote the pledge says it means exactly what we say it does, and that’s as far as it goes,” Davis concluded.